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You observe that states with higher income tax rates also tend to have higher rates of employer-provided health insurance. Is this fact a good test of the effects of tax policy on the demand for employer-provided health insurance? Explain.
Josie’s Pussycats sells ceramic kittens. The marginal cost of producing a particular kitten depends on how many kittens Josie produces, and is given by the formula MC = 0.8q.
What is the opportunity cost of investing in physical capital? Do you think a country can "over invest" in physical capital? What is the opportunity cost of investing in human
When the economy is regularly hit by TFP shocks we say the one-period model is useful because it realistically predicts that : Suppose that in the one-period model the governm
We saw that a $10 Billion increase in government spending decreases public savings and therefore reduces national savings, and will reduce equilibrium private investment and i
The Family Education Rights and Privacy Act (FERPA) was passed in 1974 to protect the privacy rights of students in higher education institutions. It is appropriate to menti
a change in environmental regulation has dramatically raised the price of a substitute chemical that indirectly competes with T3MP. This change undermines the market for the
Suppose that a Toyota Camry costs $25,000 in the U.S. and €20,000 in Europe, while the nominal dollar-euro exchange rate is 0.9€/$. a. Describe how an arbitrageur could prof
If the price of a good increases from $20 to $25 and the quantity demanded of a good decreases from 100 to 90, what is the elasticity of demand? Is the demand elastic, unit el
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